NCDEX Chana under fresh selling; Support seen at 4493
Commodity Online | June 07 2019
UPDATED 12:00:59 IST

MCX Mentha Oil likely to move in a range of 1257.9-1281.9

MCX Aluminium may trade between 138.2-140 levels

MCX Nickel under fresh buying; Support seen at 1232.4

NCDEX Chana under short covering; Resistance seen at 4076

MCX Zinc likely to move in a range of 181.2-187.6

Technically Chana market is under fresh selling as market has witnessed gain in open interest by 4.86% to settled at 129560 while prices down 43 rupees.

Now NCDEX Chana is getting support at 4493 and below same could see a test of 4461 level, And resistance is now likely to be seen at 4581, a move above could see prices testing 4637.

Chana on NCDEX settled down by 0.94% at 4525 due to surge in chana supplies in the physical markets due to fresh crop arrivals.

Chana supplies are expected to increase in spot market as government agencies which is holding major portion of chana may auction at or above MSP of Rs 4,600 per 100 kg will stabilize prices near MSP.

India has issued a combined 6,50,000 tons import quota for pulses for the fiscal year to March 2020, a government order said, allowing overseas purchases. In 2018/19, chana output forecast at 103.2 lt in 2ndadvance estimated by Government, down 8% on year due to 10% less area.

Currently, chana attract 60% import duty since Mar 2018 which restricted imports. Chana, imports are down 85.1% to 1.43 lt in 2018/19 (Apr-Jan) compared to 9.58 lt last year, while exported are close to 2 lt of chana compared to 68,000 tonnes last year.

According to the data, all India chana arrivals is reported at 1.53 lakh MT which is 15.46 per cent lower than the 1.81 lakh MT arrivals of chana in April 2019. According to latest report by NAFED, all India chana procurement for Rabi 2019 reached around 1.87 lakh MT.

According to the second advance estimate released by government, chana production estimate for 2018-19 is 10.32 million MT which is 8.10percent lower than the 4th advance estimate of 11.23 million MT of 2017-18.

Trading Ideas:
--Chana trading range for the day is 4461-4637.
--Chana dropped due to surge in chana supplies in the physical markets due to fresh crop arrivals.
--Chana supplies are expected to increase in spot market as government agencies which is holding major portion of chana may auction at or above MSP.
--India has issued a combined 6,50,000 tons import quota for pulses for the fiscal year to March 2020, a government order said
--In Delhi spot market, chana dropped  by 28.65 Rupees to end at 4486.35 Rupees per 100 kgs.

Courtesy: Kedia Commodities

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